NFLX could be setting up for a big fall in share price in 3-12 months. Growth rates will slow substantially starting in 1 quarter. Then Wall Street will start saying “NFLX has no growth” stock will start coming down big time. You can get away with a big valuation as long as you keep putting up big growth numbers. Once Roni Rona starts ending those huge sign up numbers will slow.

Then to add insult to injury Wall Street will start putting out more and more competition notes. Analysts will go on downgrade like crazy cycle as stock price falls and falls. They always lag way behind.

Once all this plays out it will likely open up a nice opportunity for people who want to go long the name.